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7 Things To Avoid After Applying for a Mortgage!

by Melissa Dierks

Congratulations! You’ve found a home to buy and have applied for a mortgage! You are undoubtedly excited about the opportunity to decorate your new home! But before you make any big purchases, move any money around, or make any big-time life changes, consult your loan officer. They will be able to tell you how your decision will impact your home loan.

Below is a list of 7 Things You Shouldn’t Do After Applying for a Mortgage! Some may seem obvious, but some may not!

1. Don’t change jobs or the way you are paid at your job! Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well.

2. Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.

3. Don’t make any large purchases like a new car or new furniture for your new home. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher debt to income ratios… higher ratios make for riskier loans… and sometimes qualified borrowers no longer qualify.

4. Don’t co-sign other loans for anyone. When you co-sign, you are obligated. As we mentioned, with that obligation comes higher ratios as well. Even if you swear you will not be the one making the payments, your lender will have to count the payment against you.

5. Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is consistency among your accounts. Before you even transfer money between accounts, talk to your loan officer.

6. Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

7. Don’t close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more likely to be approved. Wrong. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score.

Bottom LineAny blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. They are there to guide you through the process.

 

Source: mykcm.com

 

If you're looking to buy, sell, or invest in the Phoenix or surrounding area, CALL The Regal Team Today.

 

Melissa Dierks, Owner of The Regal Team of Keller Williams Professionl Partners

Certified Military Residential Specialist

Direct: 623-229-0154

Email: melissa@theregalteam.com

Mortgage Rates Jump to 4-Year High

by Melissa Dierks

After mostly stagnant activity levels in recent weeks, mortgage rates are back on the move. The 30-year fixed-rate mortgage rose to its highest level since January 2014 this week, also seeing its largest weekly increase since February of this year, Freddie Mac reports. 

Average mortgage rates were higher across the board too, posting weekly increases to not only the 30-year fixed-rate mortgage but also to 15-year and 5-year hybrid adjustable-rate mortgages.

Freddie Mac reports the following national averages in mortgage rates for the week ending April 19: 

  • 30-year fixed-rate mortgages: averaged 4.47 percent, with an average 0.5 point, rising from last week’s 4.42 percent average. Last year at this time, 30-year rates averaged 3.97 percent. 
  • 15-year fixed-rate mortgages: averaged 3.94 percent, with an average 0.4 point, rising from last week’s 3.87 percent average. A year ago, 15-year rates averaged 3.23 percent. 
  • 5-year hybrid adjustable-rate mortgages: averaged 3.67 percent, with an average 0.3 point, increasing from last week’s 3.61 percent average. A year ago, 5-year ARMs averaged 3.10 percent. 

Source: Freddie Mac

If you're looking to buy, sell, or invest in the Phoenix or surrounding area, CALL The Regal Team Today.

 

Melissa Dierks, Owner of The Regal Team of RE/MAX Professionals

Certified Military Residential Specialist

RE/MAX Hall of Fame

Direct: 623-229-0154

Email: melissa@theregalteam.com

Just when you thought the housing market couldn’t get any hotter, the prospect of rising mortgage rates had buyers even more frenzied in March, according to a report out Friday. 

The monthly survey of real estate agents from Credit Suisse showed that an index of buyer traffic around the country rose 2 points to 50, on a scale where 50 indicates a neutral reading. As always, there was great regional variety, but as Credit Suisse put it, agents’ commentary “remains centered on pent-up demand, especially in more affordable price points, given the persistent inventory shortage.”

The threat of rising mortgage rates is also starting to be felt. That “got many buyers off the fence,” as one survey respondent in Houston said. In 36 metro areas Credit Suisse surveys, 23 said incoming rate increases were motivating buyers. Still, as one Seattle real estate agent put it, “Rate increases are causing a sense of urgency, but there is not enough inventory to sell.”

And Credit Suisse also made note of a theme that’s starting to gain as much traction as the notion of scarce inventory: “In several markets spanning the Southern U.S., agents noted in-migration – driven by employment and lifestyle changes – is supporting ongoing gains in traffic as we move into spring.” That’s a theme MarketWatch has covered recently. 

ReadAmerica’s new great migration in search of lower property taxes

And for buyers who can’t move across the country for more reasonable prices, Credit Suisse’s survey found more house-hunters going back to a tried-and-true way of landing more affordable housing. What they call “a greater willingness among buyers to move further out to the periphery” was known as “driving until you qualify” a decade ago. 

Here are some selected local highlights from the March survey, along with Credit Suisse’s proprietary traffic index data for each.

City Traffic index Comments
Boston 36

“Continued shortage of available inventory is leading some buyers to abandon their search.” 

“Rising prices and the uptick in interest rates are pushing the bottom tier out of the marketplace.” “Buyers looking at homes in further out areas in order to compete with rising rates.” 

Chicago 38 “First-time and move-up buyers are coming on strong while the luxury buyers are languishing.” 

“Buyer optimism amidst low levels of inventory.” 

Denver 46

“Prices being bid up well beyond the list price.”

Fort Myers 50

“Clients appear to feel more confident in the economy.” 

“Colder weather in the Northeast states driving more snowbirds to the area.”

Houston 54

“Continued corporate relocations to the area.”

Inland Empire, California 25

“Rates causing buyers to purchase smaller or older homes, or move further out.” 

“Buyers will purchase what they can afford given rising rates; homes will be smaller and locations outside of previously considered areas.”

Jacksonville 75

“Good economy and still affordable price points.” 

“Corporate growth in the area.”

Las Vegas 38

“Open house traffic much higher than last year and more interest in entry level homes.” 

“People moving to the county in droves!” 

“Higher prices and shortage of available inventory.”

Miami 30

“Lenders tight on buyer qualifications and property conditions.”  

“First-time buyers concerned over rising rates although higher end buyers more motivated to purchase.”

Minneapolis 63

“Clients that have been dragging their feet now cannot afford as much.”

Nashville 21

“More people moving into the area.” 

“Seeing an increase in seller paid closing costs and additional financial assistance on behalf of buyers.”

New York-Northern New Jersey 47

“Many buyers interested in purchasing homes outside the state, in places like North Carolina.”

Phoenix 71

“Buyers willing to go further out to get a larger home.”

Raleigh 67

Lack of inventory and frenzied buying.” 

“Some buyers moving towards variable rate mortgage products offered by credit unions.”

Sacramento 77

“More people and companies moving to the area.” 

“Buyers are lowering their expectations, sacrificing either square footage or location to meet price points.”

San Antonio 60

“Retirees looking to move to the area due to the climate and the fairly low cost of living.” 

“Buyers qualifying for lower amounts.”

San Diego 46

“Buyers more concerned with HOA fees than rates.” 

“Seeing movement to lower priced areas if anything is available.” 

“Buyers willing to move further from the city.”

Virginia Beach 50

“Large influx of low quality new construction which is outperforming the sales of existing homes.” 

“Buyers having sticker shock over rising home prices.”

If you're looking to buy, sell, or invest in the Phoenix or surrounding area, CALL The Regal Team Today.

 

Melissa Dierks, Owner of The Regal Team of RE/MAX Professionals

Certified Military Residential Specialist

RE/MAX Hall of Fame

Direct: 623-229-0154

Email: melissa@theregalteam.com

Source:  Keeping Current Matters and all references above

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Melissa Dierks
Keller Williams Professional Partners
7025 W Bell Road, Suite 10
Glendale AZ 85308
Direct: (623)229-0154
Office: (623)643-1092
Fax: (623)201-7562

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